WEBVTT IEW OF THERACE FOR THE 30TH ASSEMBLY SEAT.NEXT TUESDAY, WE'LL HEAR FROMALL FOUR CANDIDATES RUNNING FORTHAT OFFICE.ERIN: AT THE STATE CAPITOLTODAY, GOVERNOR BROWN LAID OUTHIS REVISED STATE BUDGET.AND WITH IT, ISSUED A WARNING.MORE BAD ECONOMIC TIMES ANDBUDGET SHORTFALLS ARE ON THESTATE'S HORIZON.IT'S A $122 BILLION BUDGESCALED-BACK BY A FEW HUNDREDMILLION FROM JANUARY'S ORIGINALBUDGETTHE GOVERNOR SAYS HE WAS FORCEDTO DO THAT BECAUSE OF A $1BILLION DROP IN CAPITAL GAINSTAXES.REPORTER SHAROKINA SHAMS HASMORE.GOV. BROWN: WHAT YOU DON'T SPENDTODAY, YOU MINIMIZE THE PAINLATER.SHAROKINA: GOVERNOR JERRY BROWNONCE AGAIN IS CAUTIONINGLAWMAKERS THAT THERE'S NO ROOMIN THE STATE'S NEW BUDGET FORNEW SPENDING.USING CHARTS AND GRAPHS, BROTALKED TODAY ABOUT WHAT FUTUREBUDGET DEFICITS MIGHT LOOK LIKE.AND WHY THE STATE'S BIGGESTSOURCE OF INCOME TAX, CAPITALGAINS TAX, IS NO LONGERPREDICTABLE. GOV. BROWN: BUT AT THE END OFTHE DAY, WE'VE GOT TO COME OUTWITH A SIZEABLE RESERVE. WE CAN'T HAVE ANY SIGNIFICANTNEW SPENDING.AND WE GOT TO GET READY FOR THEDOWNTURN.SHAROKINA: HIS ANNOUNCEMENTTODAY OF NO SIGNIFICANT NEWSPENDING HAS FRUSTRATED PEOPLELIKE JENNIFER GREPPI.WHO REPRESENTS LOWER-INCOMEPARENTS, WHO'D HOPED FOR ANINCREASE IN SUBSIDIZED CHILDCARE.JENNIFER: RIGHT NOW, WE'RELEAVING BEHIND INFANTS ANDTODDLERS AT AN ASTOUNDING RATE. THESE FAMILIES NEED CHILD CAREIN ORDER TO WORK, IN ORDER TOTAKE ADVANTAGE OF THAT NEW $15MINIMUM WAGE.SHAROKINA: AND WHILE THE STATEHAS ADDED MILLIONS OF PEOPLE TOITS MEDI-CAL PROGRAM, MANYMEDI-CAL BENEFITS HAVE BEEN CUT.THOSE AREN'T COMING BACK ANYTIMESOON, EITHER.ANTHONY: WE APPRECIATE THEGOVERNOR'S FOCUS ON PREPARINGFOR THE NEXT RECESSION.BUT WE THINK THAT NEEDS TO BEBALANCED WITH UNDOING THE DAMAGEFROM THE LAST RECESSION.SHAROKINA: REPUBLICANS, THOUGH,SAY THE GOVERNOR IS RIGHT TO BCAUTIOUS.SEN. NIELSEN: THE GOVERNOR SEEMSTO BE CONCERNED AND RESPONSIBLE.PROBABLY, THE BIGGEST SIGNAL WASTHAT HE WANTS TO CONTINUE TO PUTTHAT $2 BILLION AWAY IN THE